May 16, 2025
TenneT is negotiating with investors to sell a stake in its German division worth up to $13 billion.
State-owned Dutch power grid operator TenneT has begun discussions with investors regarding the sale of a minority stake in its German subsidiary, which could be one of Europe's largest transactions in 2025, according to four sources familiar with the situation.
As of 2024, TenneT Germany has a regulated asset base (RAB) valued at 27.8 billion euros ($31 billion), expected to grow by 25% annually through 2029, based on an investor presentation on its website.
A share sale in TenneT Germany might generate up to 12 billion euros, although this amount could vary significantly depending on the stake size and debt levels, as noted by three sources.
The Dutch government has promised to maintain a BBB-rated capital structure for TenneT Germany, similar to other German high-voltage grid operators (TSOs).
Non-binding bids are expected by mid-June, according to the sources, who requested anonymity due to the private nature of the discussions.
Both TenneT and the Dutch government declined to provide comments.
While the U.S. trade war has hindered deal-making recently, regulated grid assets that offer fixed returns are likely to attract more investors amidst declining interest rates and increased economic uncertainty, the sources mentioned.
Funds such as Apollo Global Management, Canada's Caisse de dépôt et placement du Québec (CDPQ), and Macquarie have shown interest in the sale, according to two sources.
Additionally, BlackRock-owned Global Infrastructure Partners (GIP) and the CPP Investment Board (CPPIB), responsible for managing Canadian pension funds, are also expected to be interested, as stated by one source and a third person.
More potential buyers may come forward, and consortiums are likely to form due to the deal’s size, according to two sources, who also indicated that a transaction is not guaranteed.
Apollo, CDPQ, Macquarie, GIP, and CPPIB have all refrained from commenting.
The Dutch government has initiated a dual-track process for TenneT Germany following an unsuccessful partial sale to German state lender KfW last year. The Hague remains open to the idea of Germany acquiring a stake in the company.
Apart from a sale, the government may consider a partial initial public offering for the business.
Dutch Finance Minister Eelco Heinen stated in a recent letter to parliament that he aims to decide between the two options by early July.
"Based on discussions with investors and anticipated non-binding bids, I will evaluate with TenneT what is expected to be the best option," he wrote in the letter dated May 13.
With over 14,000 kilometers of network, TenneT Germany is the largest high-voltage power grid operator in the country and reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of 2.2 billion euros in 2024.
As of 2024, TenneT Germany has a regulated asset base (RAB) valued at 27.8 billion euros ($31 billion), expected to grow by 25% annually through 2029, based on an investor presentation on its website.
A share sale in TenneT Germany might generate up to 12 billion euros, although this amount could vary significantly depending on the stake size and debt levels, as noted by three sources.
The Dutch government has promised to maintain a BBB-rated capital structure for TenneT Germany, similar to other German high-voltage grid operators (TSOs).
Non-binding bids are expected by mid-June, according to the sources, who requested anonymity due to the private nature of the discussions.
Both TenneT and the Dutch government declined to provide comments.
While the U.S. trade war has hindered deal-making recently, regulated grid assets that offer fixed returns are likely to attract more investors amidst declining interest rates and increased economic uncertainty, the sources mentioned.
Funds such as Apollo Global Management, Canada's Caisse de dépôt et placement du Québec (CDPQ), and Macquarie have shown interest in the sale, according to two sources.
Additionally, BlackRock-owned Global Infrastructure Partners (GIP) and the CPP Investment Board (CPPIB), responsible for managing Canadian pension funds, are also expected to be interested, as stated by one source and a third person.
More potential buyers may come forward, and consortiums are likely to form due to the deal’s size, according to two sources, who also indicated that a transaction is not guaranteed.
Apollo, CDPQ, Macquarie, GIP, and CPPIB have all refrained from commenting.
The Dutch government has initiated a dual-track process for TenneT Germany following an unsuccessful partial sale to German state lender KfW last year. The Hague remains open to the idea of Germany acquiring a stake in the company.
Apart from a sale, the government may consider a partial initial public offering for the business.
Dutch Finance Minister Eelco Heinen stated in a recent letter to parliament that he aims to decide between the two options by early July.
"Based on discussions with investors and anticipated non-binding bids, I will evaluate with TenneT what is expected to be the best option," he wrote in the letter dated May 13.
With over 14,000 kilometers of network, TenneT Germany is the largest high-voltage power grid operator in the country and reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of 2.2 billion euros in 2024.